Death Benefits - defined benefit
The details included here relate to members of the Defined Benefit Structures of the scheme at date of death.
The benefits payable for members of the defined contribution scheme are different. You should refer to the Defined Contribution area of the website for this information.
What happens if I die before my pension starts?
If you die while in employment and are contributing to the Scheme as required by your employer, the benefits are:
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Lump Sum |
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Survivor’s Pension |
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Children’s Pensions |
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three times your pensionable
earnings at the date of your death; and
a refund of your own
contributions, with
interest.
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50% of the pension you would have received, calculated on full pensionable service to
age 65 and your
pensionable earnings
at the date of your death. |
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12.5% of the pension you would have received, calculated on full pensionable service to
age 65 and your pensionable earnings at the date of your death, would be paid to each of up to four dependent children. |
See Important Notes
What happens if I die after leaving the Scheme?
If you die after leaving the Scheme but before you start receiving your pension the benefits are:
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Lump Sum |
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Survivor’s Pension |
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Children’s Pensions |
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a refund of your own
contributions, with
interest.
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50% of the pension you would have received, calculated on the
value of your deferred pension at the date of your death.
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12.5% of the pension you would have received, calculated on the value of your deferred pension
at the date of your death, would be paid to each of up to four dependent children.
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See Important Notes
What happens if I die after my pension starts?
When you die after your pension has started the benefits are:
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Lump Sum |
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Survivor’s Pension |
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Children’s Pensions |
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if you die within five years of the start then a lump sum is paid. This is equal to the unpaid balance of the first five years’ pension payments. At the rate of pension at the date of death. (A lump sum cannot be paid if you are over age 75 at your date of death.)
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50% of your pension (calculated on your full pension before you
took any tax-free cash and including increases to your date of death).
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12.5% of your pension
(calculated on your full pension before you took any tax-free cash and including increases to your date of death) would be paid to each of up to four dependent children. |
See Important Notes
Important Notes
If you joined the Scheme before 1 October 1997 a survivor’s pension will only be provided for any period when you paid full-rate contributions.
If your survivor is more than ten years younger than you, the pension will be reduced by 2.5% for each year in excess of ten that he/she is younger than you.
Except for legal spouses, it will be necessary for the Trustees to receive confirmation that the nominee for a pension is eligible at the date of death.
Because of the regulations governing schemes which are ‘contracted-out’ of the additional State pension, the Widow’s/Widower’s Guaranteed Minimum
Pension, or Minimum ‘Reference Scheme’ pension (for any member’s service from 6 April 1997), will always be provided, and must be paid to a legal spouse, if you have one, from the date of your death.
Do I need to update my nominations?
Death benefits are paid at the discretion of the Trustee and as a result are currently excluded from your estate for inheritance tax purposes. To assist the Trustee in deciding who should receive the benefit you can complete a Nomination Form. You should ensure that your nominations are kept up to date. If you wish to make any changes to your
nomination(s), please complete a new Nomination Form.
To view the Nomination Form, please click here.
Who is eligible to receive the lump sum?
The lump sum may be paid to:
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one or more persons or organisations;
if you choose more than one, you must state the percentage you want each person or organisation to receive;
you should not use the words ‘Executor’, ‘Administrator’, ‘In Trust for’ or ‘Estate’ for your nomination, but the proper names of persons or organisations. |
Who is eligible to receive the survivor's pension?
The survivor's pension may be paid to:
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your spouse or civil partner; or
anyone who lives with you and shares the living expenses; or anyone who is financially dependent on you (A child may only be nominated as described below.);
you may nominate a child (of any age) who is disabled and is unable to earn a living (in this case the child would be paid the survivor’s pension, but not the child’s pension);
you may nominate a dependent child to receive the survivor’s pension only up to the date he or she ceases to be treated as a 'Child' (See Who is eligible to receive the children's pension? for definition of Child). No other child’s pension can be paid at the same time. |
Who is eligible to receive the children's pension?
Children's pensions may be paid to:
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any child who is aged under 18; or
any child below age 22 if in full-time education; or
a child of any age who is disabled and unable to earn a living, unless the child is already receiving a survivor’s pension. |
Are there any circumstances that affect the children's pension?
Children’s pensions cease on reaching age 18, or 22 if in full-time education, unless the child is disabled and unable to earn a living when the pension can continue for the rest of that child’s life.
Children’s pensions will be doubled if:
| No survivor’s pension is paid |
OR
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Dependent children are orphans or become orphans |
What if I joined the Scheme before 1 October 1997?
You had the choice of paying:
Full contributions to provide for a full survivor’s
pension |
OR
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Reduced contributions and not providing for a full
survivor’s pension |
The spouces Statutory Minimum Pension (SMP) would still be payable
The reduced contribution rate is a set percentage lower than the full contribution rate. The level of reduction applicable depends on the benefit structure you are a member of. Further information is available on request.
You may have delayed paying the full contribution rate for a survivor’s pension until later in your membership. In this event, the pension for your nominated survivor will be calculated from the date on which you start to pay the full rate of contribution. Once you decide to pay the additional contribution, you will not be able to reverse your decision.
If you have paid the full contribution you may have the option at retirement not to provide for a survivor’s pension and take an increased pension for yourself. Details of the options will be provided at retirement.
These options do not apply to deferred members who left before 6 April 1992